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Business, 17.12.2019 03:31 shan8747

Suppose intel stock has a beta of 1.6, whereas boeing stock has a beta of 1. if the risk-free interest rate is 4% and the expected return of the market portfolio is 10%, according to the capm, a. what is the expected return of intel stock? b. what is the expected return of boeing stock? stock price/share ($) number of shares outstanding (millions) golden seas 13 1.00 jacobs and jacobs 22 1.25 mag 43 30 pdjb 5 10 m12_berk5561_04_se_c12.indd 400 12/10/16 12: 03 am chapter 12 systematic risk and the equity risk premium 401 c. what is the beta of a portfolio that consists of 60% intel stock and 40% boeing stock? d. what is the expected return of a portfolio that consists of 60% intel stock and 40% boeing stock? (show both ways to solve this.)

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